In the past, the question was, “Is it possible to make money online?” Now that millions have proven it is possible, many are wondering how they can take advantage of the opportunity it presents. One concern is big overhead costs. An ecommerce business is highly attractive. While brick-and-mortar retailers are posting decelerating growth and even losses, ecommerce websites are posting better-than-expected performance.

However, an ecommerce business has its downside. It entails investing large amounts of money into inventory, sophisticated ordering and payment systems, and staff costs. Fortunately, an alternative exists. For people who want to make money online easily without big overhead costs, affiliate marketing is the answer.

The concept of affiliate marketing has been around for a long time. Basically, affiliates work as independent distributors, contractors, or agents. They will receive commission for every purchase or sales lead they produce. There are two basic types of payment schemes. The first involves direct and one-time payment for the sale. The second is often referred to as recurring commissions.

Usually, the one-time payment given to affiliates is a large amount (on the basis of percentage) while the latter provides the affiliate with a monthly, quarterly, or yearly commission for as long as the subscriber referred continues to use the service. Depending on your needs, personality, and personal preference, either the first or the second one can work for you.